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GSJ: Volume 9, Issue 7, July 2021 ISSN 2320-9186 2310 GSJ: Volume 9, Issue 7, July 2021, Online: ISSN 2320-9186 www.globalscientificjournal.com THE ACTUALITY OF CORRUPTION PERCEPTIONS INDEX IN THE FORMATION AND IMPLEMENTATION OF PUBLIC INVESTMENT POLICY IKBOLJON ODASHEV MASHRABJONOVICH Ikboljon is currently working as a leading specialist at the Institute of Forecasting and Macroeconomic Research under the Ministry of Economic Development and Poverty Reduction of Republik of Uzbekistan, Uzbekistan, Tashkent. E-mail: [email protected]; [email protected]. Mobile: +99897-764-91-01; +99890-903-21-05 KeyWords Corruption perception index, investment policy, world economy, global investment, attractiveness, regression, correlation, shadow economy. ABSTRACT This study investigated the actuality of the correlation between The Corruption Perception Index and The Foreign Direct Investment’s attrac- tiveness index at the formation and implementation of public investment policy and influence of development projects of the countries by means of multiple regression analytical formulas. In addition, find some important drivers and factors of modeling issues of the foreign di- rect investment, which is associated with attracting into the economy, increasing its development attractiveness. Because, foreign invest- ment provides an opportunity to saturate the sectors of the economy that are highly profitable, but at the same time need the necessary material and financial resources. COVID-19 is not just a health and economic crisis. It is a corruption crisis. And one that We are currently failing to manage Delia Ferreira Rubio Chair, Transparency International1 INTRODUCTION Corruption is a pervasive global problem. Christiane Taubira, the former French Justice Minister, when launching the Foreign Bri- bery Report in 2014, outlined many of the issues and concluded that corruption is “stealing the future of the world’s children”. This is no exaggeration2. Today, territorial attractiveness has become an important component of economic policies and seducing potential investors is now a major objective for all states, seen the positive impact of FDI inflows on the host countries (Krugman & Obstefld, 1999). 1 Corruption Perceptions Index 2020, World Economic Forum/Benedikt von Loebell / CC BY-NC-SA 2.0 2 OECD Working Papers on International Investment 2017/01, Foreign direct investment, corruption and the OECD Anti-Bribery Convention, Adrian Blundell- Wignall, Caroline Roulet GSJ© 2021 www.globalscientificjournal.com GSJ: Volume 9, Issue 7, July 2021 ISSN 2320-9186 2311 Why do we focus on FDI? The answer is very simple – FDI has become an increasingly more important factor of economic growth. This is reflected in the trend over the last several years as countries have increased reliance on FDI. Between 1986-1989 and in 1995 the rate of FDI grew more rapidly then world trade in goods. Between 1973 and 1995 the value of FDI multiplied by more than 12 times, from $25 billion to $315 billion, while the value of commodity exports multiplied by about eight and a half times, from $575 billion to $4900 billion.3 In many cases, the value of FDI flowing into a country exceeds the level of official government aid to that country.4 In brief, while the value of international trade in goods is still far greater than the value of FDI, FDI plays an increasing- ly important role. Developing and transition nations have a particularly strong interest in attracting foreign capital. Domestic savings are often insufficient in these countries to finance their investment needs. This capital shortage affects both public and private investment. The Asian Development Bank predicts that the demand for infrastructure investment in Asia alone will reach $150 billion annually by 2010.5 The World Bank forecasts the need for investment between $1.2 and $1.5 trillion in infrastructure development in developing East Asian countries.6 Foreign investment is also a key component of privatization schemes in transition economies in Central and Eastern Europe. The privatization process in the Czech Republic, Hungary, and Poland as well as in countries like Slovakia, Bulgaria, and Romania, has actively pursued foreign capital.7 In addition, studying of territorial attractiveness as a concept entails two approaches that can be taken into consideration: A theo- retical approach based on Foreign Direct Investment (FDI) determinants and a strategic one based on territory promotion policies. The central issue for the economy of any country is that of increasing its rate of economic growth, a reliable driver of which is the formation and development of a strategy for the sustainable development of territories based on the intensification of investment activities. The development of any country is determined by solving the problems associated with the formation of effective regional strategies aimed at accelerating economic growth, which is a necessary condition for attracting active foreign investment. In the process of innovation, investment projects in the formation of production capacity of the regions on a new scientific and technical basis predetermine the competitiveness of the country's regions. Along with solving global problems related to economic and social development, the development of important aspects of the concept of innovation and investment in regional development is an integral part of the modern economy. LITERATURA REVIEW Previous studies have mainly reported a negative association between corruption level and country wealth [18, 19, 20, 21], i.e., on average richer countries are less corrupt. There is ongoing debate concerning the relation between corruption and economic growth [22]. Some earlier studies suggested that corruption may even help the most efficient firms bypass bureaucratic obstacles and rigid laws [23], while recent papers do not find a significant negative association between growth and corruption [18,19]. The majority of studies have found an insignificant negative association between the corruption level and foreign investments [19, 24, 25], without reporting a specific functional dependence. Mathematical models have been actively used during the selection of appropriate development schemes. In the process of the di- gitalization of the economy, the problems of applying mathematical modelling methods to solving problems of sustainable development are becoming increasingly important. Mathematical modelling of the world economy in terms of foreign direct invest- ment, influences of corruption percaption has been given attention by researchers such as Makhov [13]. The directions, which the sustainable development of territories based on innovation by means of foreign direct investment, have taken, as well as the applica- tion of intellectual decision support methods, are studied in the scientific works of Zakharova [14] and Kolosova & KHavin [15]. According to Badulescu, Bungau & Badulescu [16], the task of introducing a sustainable development model is effectively that of promoting it as the main driving force for sustainability-oriented enterprises, that is, firms that meet profitability, environmental and social requirements. Despite the importance of approaches, methods, models and technologies designed to support decision-making in the field of sustainable development, it is important to take into account the factors of countries' propensity to corruption, and to adequately study the problems associated with mathematical modeling in this area. Because correlation of such kinds of factors such as The Foreign Investment Attractiveness Index and The Corruption Perceptions Index would have helped to make affective decisions and attracted the attention of foreign investors and partners. In this context, an economic analysis of the relationship between countries these global indexes are the requirement of today’s global economic development. Woo (2010) applied panel regression to evaluate the impact of corruption on FDI inflows in 90 countries from 1984 to 2004 and the result indicated that corruption had a negative influence on FDI inflows. Samimi and Monfared (2011) used panel regression to evaluate the effect of corruption on foreign direct investment inflows in 16 Organizations of Islamic Cooperation countries from 2002 to 2008; the findings indicated that corruption has negative correlation with FDI inflows. THE MAIN PART OF THE INVESTIGATION Foreign direct investment (FDI) is a category of international investment involving a long-term relationship and reflecting a lasting interest in and control by a resident entity in one economy (foreign direct investor or parent enterprise) of an enterprise resident in a different economy (FDI enterprise or affiliate enterprise or foreign affiliate)8. Capital transferred from the parent firms add to local stock and contribute to increase the host country’s production base and productivity through a more efficient use of existing resources. Foreign investments promote the diffusion of new technologies, expertise and managerial and 3All data come from Drake (1998) 4 Ibid. 5 Quoted in Kamata (1997§). 6 Ibid. 7 This topic has been discussed in a number of publications. For a more recent piece see, for example, Weimer (1997). 8 This definition is based on the FDI concept as presented in the IMF Balance of Payments Manual (BPM 5, 1993) GSJ© 2021 www.globalscientificjournal.com GSJ: Volume 9, Issue 7, July 2021 ISSN 2320-9186 2312 marketing skills through direct linkages or spillovers to domestic firms. Finally,

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